Noodle Partners saves universities $15,000 to $30,000 per student over OPM-managed programs of similar quality. For a single 45-credit program ramping up to 300 student starts per year, we can save your school more than $25 million over eight years.
Our basic approach is the fee-based model described below. But we also offer a temporary revenue share model for schools that would prefer to let us cover their upfront costs.
Our Fee-Based Model
Our fee-based model is transparent and simple. It is designed to keep costs low and to complement your internal resources
- Noodle Partners – We charge an administrative fee of about $10,000 per month for each program we help manage, plus about $50 per credit hour (this drops to under $10 per credit hour as we grow your online presence). If you choose, we will help support campus-based students in the corresponding program at minimal fee.
- Providers – These fees will vary depending on which services and technology you choose to provide internally vs. externally. We will bill you quarterly for the services of our providers, and pass along 100% of these fees to them.
On average, our fees will total 3-5% of tuition, and if you want a turnkey solution much like that of traditional OPMs, our providers’ services (marketing, recruitment, retention, instructional design, etc.) will average 25-30% of tuition. Please click here and we’ll set up a time when we can provide you with a more detailed projection of your costs.
Noodle Partners’ contracts last from three to ten years, at your discretion. Our flexibility makes it possible for you to handle any function with the right combination of in-house and outside capacity as you grow, and (over time) to streamline operations by thinking of your online and on-campus students as part of a single, agile program.
Temporary Revenue Share
While our fee-based approach makes online education more affordable than it has ever been, some schools cannot invest the millions of dollars needed to launch and grow a high-quality program, and some are concerned about the risks involved.
For that reason, we can provide the funds needed to build and scale your programs. We do this by charging you a temporary revenue share of 60%. Once our initial investment has been recouped, you can revert to our standard fee-based model, described above. While overall costs will be slightly higher than if you used your own funds, this option is still much more cost-effective than a traditional OPM agreement (click here to compare models), and may allow you to go online faster and better than with any other approach.
What Makes Us So Efficient?
As we’ve noted, the Noodle Partners model will cost you considerably less than either building your own programs or working with a traditional OPM. Here’s why:
- Technology: Our ongoing investment in the NoodleBus helps us tie together various technologies, and pull the data into our reporting and visualization tools, with unprecedented efficiency.
- Partners: The scores of providers we bring together have invested over $1.5 billion in their technologies and services. They work to our specifications and give us exceptional pricing because we speak for ten of the best universities in the US (we expect to represent twenty more by the end of 2018); we don’t ask a commission on their work; and we’ve already integrated them into our technology stack (see above).
- Network Effects: As we add more schools to our network, our benchmark data gets more precise, and the synergies among the schools (for instance, working together to achieve better and quicker placement into clinical practices) becomes more evident.
- Lower Profit: Wall Street expects that each contract will bring an OPM $5 to $10 million a year in profit. Along with our providers, our target is an order of magnitude less; we will become a significant company only by being so good that we create a large network (which benefits each of the universities involved, as per above).
And That’s Why
This is a new model of online higher ed. It invests our expertise and millions of dollars to help you create excellent online and hybrid programs that have a 30% cost advantage over competitive programs, to the benefit of your school and your students.